Do you have $1 million saved for retirement?
A recent Huffington Post article proclaimed that retirees need $1 million dollars to have a secure retirement. No doubt that’s probably true but what about the rest of us? If you’re retired or a pre-retiree and you don’t already have that million chances are you won’t make it without a winning lottery ticket.
Don’t have your million saved yet?
The good news is there are enough other retirement rules of thumb from which to choose.
So, how much money do you need for a secure retirement?
- Some financial advisers say you will need enough income to replace 75 percent to 85 percent of your pre-retirement income.
- Others say 55 percent will do.
- And still others insist that you will need 110 percent.
- Here’s another approach: 11 times your final salary, if you are age 65. That drops to 9.4 times if you’re 67 and climbs to13.5 times if you are 62, claims human resources firm AonHewitt.
- Or how about this: 25 times your pre-retirement living expenses minus the amount you will receive from Social Security and annuities?
Only about one third of workers reach retirement age with enough for a secure retirement
“Broadly, we see a one-third, one-third, one-third division” among workers approaching retirement age, says Jean Young, senior research analyst at the Vanguard mutual fund company’s Center for Retirement Research.
A third have saved enough to retire comfortably. Another third “can get there if they make changes in behavior that are doable,” Young says. Key among the needed changes is saving more –perhaps 20 percent or more of their income.
“And then you have a third that don’t have a shot,” Young says. Workers in that unfortunate group typically have had lower-income jobs,unsteady employment and managed to accumulate little or no savings. So they’re left with few choices: scrape by on Social Security, count on the kindness of relatives or keep working.
Is retirement sneaking up on you?
If retirement is sneaking up on you, the $1 million threshold is likely unreachable and you’re likely facing a fall into the bottom third. It’s time to consider tapping the most valuable asset you have, the equity in your home.
Are you prepared for a 30 year secure retirement?
The goal of our parent’s generation was to work hard, pay off their home loan and retire on SSI and pension. That strategy worked pretty well for many because their retirements only lasted 15 plus years. Members of our generation are looking at retirements of 30 or more years with a lot more uncertainty than our parents faced. New strategies are the order of the day.
If you’re a California homeowner your retirement salvation is right under your feet. Your home and more accurately the equity in your home is likely the best solution to your retirement worries.
If you haven’t saved enough for retirement and don’t want to rely on the kindness of relatives, then it’s time to consider what is likely your most valuable asset: the equity in your home.
The New Reverse Mortgage offers a multitude of variations that will help you reach your retirement objectives. Matching your objectives with one of the many New Reverse Mortgage programs is our job and we take it very seriously.
The New Reverse Mortgage isn’t for everyone…but it could be!
If you’re still wondering if a Reverse Mortgage is the right solution for you but you’re not ready to sit down with one of our Reverse Mortgage Experts, then we’ll be happy to mail (or email) you Use Your Home to Stay at Home which is the official federally approved consumer booklet for those considering a reverse mortgage.